Operating losses growing at Kent’s ShoWare Center

It appears Kent’s ShoWare Center could be on a record-setting pace for operating losses this year.

Although arena officials expect a strong fourth quarter with numerous events at the city-owned facility, the losses hit $764,473 through the first nine months, according to the ShoWare Center’s income statement. The arena had expenses of $2.05 million and revenue of $1.28 million.

That would rank as the biggest annual loss since the arena opened in 2009 and send the six years of losses to more than $3 million. The facility has lost money every year, with a high of $707,541 in 2012 and low of $370,874 in 2013.

A cancelled concert in July kept the revenue lower for that month, said Arletta Voter, ShoWare finance director, at an Oct. 30 Public Facilities District meeting. The board helps oversee arena operations.

“The year to date actual is quite a bit over budget significantly due to the unexpected capital expenses of $182,373,” Voter said.

Those expenses are for the repairs to the ice plant equipment at the $84.5 million facility. Without that expense, the losses would be $582,100. City officials are pursuing reimbursement of those costs from contractors and subcontractors because the system failed after such a short period.

“It was a complete overhaul and recommissioning of the ice plant system,” said Ben Wolters, city economic and community development director, who helps oversee the arena. “It was substantial replacement of key parts. Any part showing any sign of wear and tear was replaced. The system was reset and restarted from ground zero.”

Wolters said the ice plant system that produces the arena ice for the Seattle Thunderbirds junior hockey team is working well after repairs by PermaCold Engineering out of Oregon.

“PermaCold has a firm handle on it,” Wolters said. “We’re really pleased with the direction. They have some further recommendations we’re evaluating for changes to the system which they think will optimize its performance and further reduce the risk of any problems with the system. We’re likely to do that and those will be expenses we will see next year, about $30,000 for design changes.”

Tim Higgins, ShoWare general manager, said the repairs have worked.

“The system is running the best it has been in the six years we’ve had it,” Higgins said.

As far as a strong final quarter this year, Higgins said many events are scheduled for the arena.

“We are looking at 45 events between now and the end of the year,” Higgins said. “That’s pretty strong. It’s been quite active. I wish we could be doing 60 days, we’d like to fill everyday possible.”

The center will host 179 events by the end of the year.

“That’s right in the ballpark of what we’ve been doing,” Higgins said.

Events coming up include Disney On Ice Nov. 12-17 with 10 performances that average about 2,000 people per show; The Wolf Hometown Holiday concert on Dec. 10 that has sold more than 2,500 tickets; the 103.7 Hot House Party concert featuring Bobby Brown on Dec. 12; and 20 Seattle Thunderbirds hockey  and Seattle Impact FC soccer games.

The fourth-quarter numbers also will include the more than 5,000 people who attended the Espinoza Paz concert on Oct. 12 and the more than 4,000 who went to the Lecrae Anomaly tour on Oct. 19.

The City Council sets aside $500,000 each year in the city’s general fund to cover operating losses at the arena. ShoWare officials will release the final 2014 income statement for the arena in January.